80_FR_15090 80 FR 15036 - Federal Employees' Retirement System; Normal Cost Percentages

80 FR 15036 - Federal Employees' Retirement System; Normal Cost Percentages

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 80, Issue 54 (March 20, 2015)

Page Range15036-15037
FR Document2015-06411

The Office of Personnel Management (OPM) is providing notice of revised normal cost percentages for employees covered by the Federal Employees' Retirement System (FERS) Act of 1986.

Federal Register, Volume 80 Issue 54 (Friday, March 20, 2015) 
[Federal Register Volume 80, Number 54 (Friday, March 20, 2015)]
[Notices]
[Pages 15036-15037]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06411]


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OFFICE OF PERSONNEL MANAGEMENT


Federal Employees' Retirement System; Normal Cost Percentages

AGENCY: Office of Personnel Management.

ACTION: Notice.

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SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of revised normal cost percentages for employees covered by the Federal 
Employees' Retirement System (FERS) Act of 1986.

DATES: The revised normal cost percentages are effective at the 
beginning of the first pay period commencing on or after October 1, 
2015. Agency appeals of the normal cost percentages must be filed no 
later than September 21, 2015.

ADDRESSES: Send or deliver agency appeals of the normal cost 
percentages and requests for actuarial assumptions and data to the 
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of 
Planning and Policy Analysis, Office of Personnel Management, Room 
4307, 1900 E Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.

SUPPLEMENTARY INFORMATION: The FERS Act of 1986, Pub. L. 99-335, 
created a new retirement system intended to cover most Federal 
employees hired after 1983. Most Federal employees hired before 1984 
are under the older Civil Service Retirement System (CSRS). Section 
8423 of title 5, United States Code, as added by the FERS Act of 1986, 
provides for the payment of the Government's share of the cost of the 
retirement system under FERS. Employees' contributions are established 
by law and constitute only a portion of the cost of funding the 
retirement system; employing agencies are required to pay the remaining 
costs. The amount of funding required, known as ``normal cost,'' is the 
entry age normal cost of the provisions of FERS that relate to the 
Civil Service Retirement and Disability Fund (Fund). The normal cost 
must be computed by OPM in accordance with generally accepted actuarial 
practices and standards (using dynamic assumptions). The normal cost 
calculations depend on economic and demographic assumptions. Subpart D 
of part 841 of title 5, Code of Federal Regulations, regulates how 
normal costs are determined.
    In its meeting on June 18, 2013, the Board of Actuaries of the 
Civil Service Retirement System (the Board) recommended changes to 
certain demographic assumptions used in the actuarial valuations of 
CSRS and FERS. The most significant change applies additional projected 
mortality improvement resulting in greater assumed annuitant longevity. 
The previous assumptions reflected mortality rates improved to year 
2024; the revised projection assumes mortality rates are expected to 
improve indefinitely at an ultimate rate of 1.0 percent annually for 
employees and non-disabled annuitants. OPM has adopted the Board's 
recommendations.
    With regard to the economic assumptions described under section 
841.402 of title 5, Code of Federal Regulations, used in the actuarial 
valuations of FERS, the Board concluded that it would be appropriate to 
continue to assume a rate of investment return of 5.25 percent. In 
addition, the Board determined that the assumed inflation rate should 
remain at 3.00 percent and that the projected rate of General Schedule 
salary increases should remain at 3.25 percent. These salary increases 
are in addition to assumed within-grade increases. These assumptions 
are intended to reflect the long term expected future experience of the 
Systems.
    The demographic assumptions are determined separately for each of a 
number of special groups, in cases where separate experience data is 
available. Based on the demographic and economic assumptions described 
above, OPM has determined the normal cost percentage for each category 
of employees under section 841.403 of title 5, Code of Federal 
Regulations.
    Section 5001 of Public Law 112-96, The Middle Class Tax Relief and 
Jobs Creation Act of 2012, established provisions for FERS Revised 
Annuity Employees (FERS-RAE). The law permanently increases the 
retirement contributions by 2.30 percent of pay for these employees. 
Subsequently, Section 401 of Public Law 113-67, the Bipartisan Budget 
Act of 2013, created another class of FERS coverage, FERS-

[[Page 15037]]

Further Revised Annuity Employee (FERS-FRAE). Employees subject to 
FERS-FRAE coverage must pay even higher employee contributions than 
employees subject to FERS-RAE. Employees subject to FERS-FRAE must pay 
an increase of 1.30 percent of pay above the percentage set for FERS-
RAE. Separate normal cost percentages apply for FERS-RAE and for FERS-
FRAE.
    The Governmentwide normal cost percentages, including the employee 
contributions, are as follows:

 Normal Cost Percentages for FERS, FERS-Revised Annuity Employee (RAE), and FERS-Further Revised Annuity (FRAE)
                                                     Groups
----------------------------------------------------------------------------------------------------------------
                                                                    FERS normal      FERS-RAE        FERS-FRAE
                              Group                                    cost         normal cost     normal cost
                                                                     (percent)       (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Members.........................................................            22.1            15.0            15.1
Congressional employees, except members of the Capitol Police...            20.4            15.0            15.1
Congressional employees who are members of the Capitol Police...            20.4            20.9            21.0
Law enforcement officers, members of the Supreme Court Police,              31.4            32.0            32.1
 firefighters, nuclear materials couriers, customs and border
 protection officers, and employees under section 302 of the
 Central Intelligence Agency Retirement Act of 1964 for certain
 employees......................................................
Air traffic controllers.........................................            33.1            33.7            33.7
Military reserve technicians....................................            18.1            18.5            18.7
Employees under section 303 of the Central Intelligence Agency              20.3            20.9            21.0
 Retirement Act of 1964 for certain employees (when serving
 abroad)........................................................
All other regular FERS employees................................            14.5            15.0            15.1
----------------------------------------------------------------------------------------------------------------

    Under section 841.408 of title 5, Code of Federal Regulations, 
these normal cost percentages are effective at the beginning of the 
first pay period commencing on or after October 1, 2015.
    The time limit and address for filing agency appeals under sections 
841.409 through 841.412 of title 5, Code of Federal Regulations, are 
stated in the DATES and ADDRESSES sections of this notice.

U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2015-06411 Filed 3-19-15; 8:45 am]
 BILLING CODE 6325-38-P

15036 Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices Week of March 30, 2015—Tentative distribution, please contact the Nuclear that relate to the Civil Service There are no meetings scheduled for Regulatory Commission, Office of the Retirement and Disability Fund (Fund). the week of March 30, 2015. Secretary, Washington, DC 20555 (301– The normal cost must be computed by 415–1969), or email OPM in accordance with generally Week of April 6, 2015—Tentative Brenda.Akstulewicz@nrc.gov or accepted actuarial practices and There are no meetings scheduled for Patricia.Jimenez@nrc.gov. standards (using dynamic assumptions). the week of April 6, 2015. Dated: March 18, 2015. The normal cost calculations depend on economic and demographic Week of April 13, 2015—Tentative Glenn Ellmers, assumptions. Subpart D of part 841 of Policy Coordinator, Office of the Secretary. Tuesday, April 14, 2015 title 5, Code of Federal Regulations, [FR Doc. 2015–06575 Filed 3–18–15; 4:15 pm] regulates how normal costs are 9:30 a.m. Meeting with the Advisory BILLING CODE 7590–01–P determined. Committee on the Medical Uses of In its meeting on June 18, 2013, the Isotopes (Public Meeting); (Contact: Board of Actuaries of the Civil Service Nima Ashkeboussi, 301–415–5775) OFFICE OF PERSONNEL Retirement System (the Board) This meeting will be webcast live at MANAGEMENT recommended changes to certain the Web address—http://www.nrc.gov/. demographic assumptions used in the Federal Employees’ Retirement actuarial valuations of CSRS and FERS. Thursday, April 16, 2015 System; Normal Cost Percentages The most significant change applies 9:30 a.m. Meeting with the additional projected mortality Organization of Agreement States AGENCY: Office of Personnel improvement resulting in greater and the Conference of Radiation Management. assumed annuitant longevity. The Control Program Directors (Public ACTION: Notice. previous assumptions reflected Meeting); (Contact: Nima mortality rates improved to year 2024; Ashkeboussi, 301- 415–5775) SUMMARY: The Office of Personnel the revised projection assumes mortality Management (OPM) is providing notice This meeting will be webcast live at rates are expected to improve of revised normal cost percentages for the Web address—http://www.nrc.gov/. indefinitely at an ultimate rate of 1.0 employees covered by the Federal percent annually for employees and Week of April 20, 2015—Tentative Employees’ Retirement System (FERS) non-disabled annuitants. OPM has Act of 1986. adopted the Board’s recommendations. There are no meetings scheduled for the week of April 20, 2015. DATES: The revised normal cost With regard to the economic percentages are effective at the assumptions described under section Week of April 27, 2015—Tentative beginning of the first pay period 841.402 of title 5, Code of Federal There are no meetings scheduled for commencing on or after October 1, 2015. Regulations, used in the actuarial the week of April 27, 2015. Agency appeals of the normal cost valuations of FERS, the Board * * * * * percentages must be filed no later than concluded that it would be appropriate The schedule for Commission September 21, 2015. to continue to assume a rate of meetings is subject to change on short ADDRESSES: Send or deliver agency investment return of 5.25 percent. In notice. For more information or to verify appeals of the normal cost percentages addition, the Board determined that the the status of meetings, contact Glenn and requests for actuarial assumptions assumed inflation rate should remain at Ellmers at 301–415–0442 or via email at and data to the Board of Actuaries, care 3.00 percent and that the projected rate Glenn.Ellmers@nrc.gov. of Gregory Kissel, Senior Actuary, Office of General Schedule salary increases of Planning and Policy Analysis, Office should remain at 3.25 percent. These * * * * * The NRC Commission Meeting of Personnel Management, Room 4307, salary increases are in addition to Schedule can be found on the Internet 1900 E Street NW., Washington, DC assumed within-grade increases. These 20415. assumptions are intended to reflect the at: http://www.nrc.gov/public-involve/ long term expected future experience of public-meetings/schedule.html. FOR FURTHER INFORMATION CONTACT: the Systems. * * * * * Karla Yeakle, (202) 606–0299. The demographic assumptions are The NRC provides reasonable SUPPLEMENTARY INFORMATION: The FERS determined separately for each of a accommodation to individuals with Act of 1986, Pub. L. 99–335, created a number of special groups, in cases disabilities where appropriate. If you new retirement system intended to where separate experience data is need a reasonable accommodation to cover most Federal employees hired available. Based on the demographic participate in these public meetings, or after 1983. Most Federal employees and economic assumptions described need this meeting notice or the hired before 1984 are under the older above, OPM has determined the normal transcript or other information from the Civil Service Retirement System (CSRS). cost percentage for each category of public meetings in another format (e.g. Section 8423 of title 5, United States employees under section 841.403 of title braille, large print), please notify Code, as added by the FERS Act of 1986, 5, Code of Federal Regulations. Kimberly Meyer, NRC Disability provides for the payment of the Section 5001 of Public Law 112–96, Program Manager, at 301–287–0727, by Government’s share of the cost of the The Middle Class Tax Relief and Jobs videophone at 240–428–3217, or by retirement system under FERS. Creation Act of 2012, established email at Kimberly.Meyer-Chambers@ mstockstill on DSK4VPTVN1PROD with NOTICES Employees’ contributions are provisions for FERS Revised Annuity nrc.gov. Determinations on requests for established by law and constitute only Employees (FERS–RAE). The law reasonable accommodation will be a portion of the cost of funding the permanently increases the retirement made on a case-by-case basis. retirement system; employing agencies contributions by 2.30 percent of pay for * * * * * are required to pay the remaining costs. these employees. Subsequently, Section Members of the public may request to The amount of funding required, known 401 of Public Law 113–67, the receive this information electronically. as ‘‘normal cost,’’ is the entry age Bipartisan Budget Act of 2013, created If you would like to be added to the normal cost of the provisions of FERS another class of FERS coverage, FERS- VerDate Sep<11>2014 20:14 Mar 19, 2015 Jkt 235001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 E:\FR\FM\20MRN1.SGM 20MRN1

Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 15037 Further Revised Annuity Employee Employees subject to FERS–FRAE must The Governmentwide normal cost (FERS–FRAE). Employees subject to pay an increase of 1.30 percent of pay percentages, including the employee FERS–FRAE coverage must pay even above the percentage set for FERS–RAE. contributions, are as follows: higher employee contributions than Separate normal cost percentages apply employees subject to FERS–RAE. for FERS–RAE and for FERS–FRAE. NORMAL COST PERCENTAGES FOR FERS, FERS-REVISED ANNUITY EMPLOYEE (RAE), AND FERS-FURTHER REVISED ANNUITY (FRAE) GROUPS FERS FERS–RAE FERS–FRAE Group normal cost normal cost normal cost (percent) (percent) (percent) Members ...................................................................................................................................... 22.1 15.0 15.1 Congressional employees, except members of the Capitol Police ............................................. 20.4 15.0 15.1 Congressional employees who are members of the Capitol Police ........................................... 20.4 20.9 21.0 Law enforcement officers, members of the Supreme Court Police, firefighters, nuclear mate- rials couriers, customs and border protection officers, and employees under section 302 of the Central Intelligence Agency Retirement Act of 1964 for certain employees .................... 31.4 32.0 32.1 Air traffic controllers ..................................................................................................................... 33.1 33.7 33.7 Military reserve technicians ......................................................................................................... 18.1 18.5 18.7 Employees under section 303 of the Central Intelligence Agency Retirement Act of 1964 for certain employees (when serving abroad) ............................................................................... 20.3 20.9 21.0 All other regular FERS employees .............................................................................................. 14.5 15.0 15.1 Under section 841.408 of title 5, Code ACTION: Notice. month in the Federal Register at of Federal Regulations, these normal www.gpo.gov/fdsys/. OPM also cost percentages are effective at the SUMMARY: This notice identifies publishes an annual notice of the beginning of the first pay period Schedule A, B, and C appointing consolidated listing of all Schedule A, commencing on or after October 1, 2015. authorities applicable to a single agency B, and C appointing authorities, current The time limit and address for filing that were established or revoked from as of June 30, in the Federal Register. agency appeals under sections 841.409 January 1, 2015, to January 31, 2015. through 841.412 of title 5, Code of FOR FURTHER INFORMATION CONTACT: Schedule A Federal Regulations, are stated in the Senior Executive Resources Services, DATES and ADDRESSES sections of this No Schedule A Authorities to report Senior Executive Services and during January 2015. notice. Performance Management, Employee U.S. Office of Personnel Management. Services, (202) 606–2246. Schedule B Katherine Archuleta, SUPPLEMENTARY INFORMATION: In Director. No Schedule B authorities to report accordance with 5 CFR 213.103, during January 2015. [FR Doc. 2015–06411 Filed 3–19–15; 8:45 am] Schedule A, B, and C appointing BILLING CODE 6325–38–P authorities available for use by all Schedule C agencies are codified in the Code of Federal Regulations (CFR). Schedule A, The following Schedule C appointing OFFICE OF PERSONNEL B, and C appointing authorities authorities were approved during MANAGEMENT applicable to a single agency are not January 2015. codified in the CFR, but the U.S. Office Excepted Service of Personnel Management (OPM) AGENCY:U.S. Office of Personnel publishes a notice of agency-specific Management (OPM). authorities established or revoked each Authorization Agency name Organization name Position title Effective date No. Department of Agriculture ............... Office of the Assistant Secretary Senior Legislative Analyst .............. DA150035 1/15/2015 for Congressional Relations. Office of Communications .............. Deputy Director .............................. DA150041 1/20/2015 Department of Commerce ............... Office of the Chief of Staff ............. Director of Advance and Protocol .. DC150043 1/15/2015 Consumer Product Safety Commis- Office of Commissioners ................ Special Assistant (Legal) ................ PS150002 1/22/2015 sion. mstockstill on DSK4VPTVN1PROD with NOTICES Department of Defense ................... Washington Headquarters Services Defense Fellow ............................... DD150035 1/7/2015 Office of Assistant Secretary of De- Special Assistant (Legislative Af- DD150045 1/23/2015 fense (Legislative Affairs). fairs) (Chief Policy). Department of the Army .................. Office of the Under Secretary ........ Special Assistant ............................ DW150012 1/28/2015 Export-Import Bank ......................... Office of the Chairman ................... Director of Scheduling .................... EB150001 1/23/2015 Department of Homeland Security .. Federal Emergency Management Special Assistant ............................ DM150049 1/7/2015 Agency. Office of the Chief of Staff ............. Special Assistant ............................ DM150050 1/20/2015 VerDate Sep<11>2014 20:14 Mar 19, 2015 Jkt 235001 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 E:\FR\FM\20MRN1.SGM 20MRN1


Document Created: 2015-12-18 11:34:27
Document Modified: 2015-12-18 11:34:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThe revised normal cost percentages are effective at the beginning of the first pay period commencing on or after October 1, 2015. Agency appeals of the normal cost percentages must be filed no later than September 21, 2015.
ContactKarla Yeakle, (202) 606-0299.
FR Citation80 FR 15036 
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